Citation:

Hisham Jameel Bardesi. "Foreign Direct Investment and Job Creation in Saudi Arabia" International Research Journal of Economics and Management Studies, Vol. 2, No. 3, pp. 375-387, 2023.

Abstract:

This study examines the relationship between Foreign Direct Investment (FDI) and job creation in the Saudi Arabian economy. Saudi Arabia, one of the largest recipients of FDI in the world, has gained in various ways from multinational corporations (MNCs). However, job creation is a significant challenge in Saudi Arabia and other developing countries, and the influence of FDI on job creation needs to be clarified. The outcome depends on the number of jobs foreign firms create and how FDI influences job growth in domestic firms operating in related industries. This study explores the relationship between FDI and job growth in Saudi Arabia by applying time series data and the Ordinary Least Square (OLS) technique to a large sample of macroeconomic data from 1980–2014. The results indicate that FDI has positive effects on employment. The results suggest that FDI increases employment significantly. Additionally, educated people and inflation positively and negatively impact employment, respectively.

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Keywords:

Foreign Direct Investment, Employment Creation, Saudi Arabia.